Moody's downgrades Codere

Moody's Investors Service said it downgraded Codere SA's corporate family rating to Caa2 from Caa1 and probability of default rating to Caa2-PD from Caa1-PD.

Concurrently, Moody's downgraded the ratings on Codere Finance (Luxembourg) SA's €760 million worth of 8¼% senior notes due 2015 and $300 million worth of 9¼% senior notes due 2019 to Caa3 from Caa2.

The outlook is negative.

"Today's one-notch downgrade of Codere to Caa2 primarily reflects Moody's view that the company's default risk has increased given the absence of material progress to date in refinancing its €60 million senior facility, which matures in June 2013 and which is vital for the company's ability to continue meeting its obligations at the parent level," Moody's vice president, senior credit officer and lead analyst for Codere Ivan Palacios said in a news release.

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